- 26 -
Respondent contends that petitioner: (1) Did not substantiate
that he paid those amounts, (2) used the Jeep to commute to his
office and for other personal uses, and (3) had no records of the
business use of the Jeep. Petitioner contends that he is not
required to have automobile use logs because he used the Jeep
almost exclusively for his farming and rental activities, and his
business usage of his Audi exceeds his personal use of the Jeep.
A taxpayer may deduct ordinary and necessary expenses paid
or incurred during the taxable year in carrying on a trade or
business. Sec. 162. However, automobile expenses are subject to
special substantiation rules. The Jeep is listed property under
section 280F(d)(4)(A)(i) because it is a passenger automobile. A
taxpayer may not deduct automobile expenses unless he or she
substantiates by adequate records or sufficient evidence
corroborating the taxpayer’s own statement the amount, time and
place, and business purpose of the expense. Sec. 274(d)(4).
Petitioner has not substantiated the purpose, time, or place
of travel for any of the Jeep expenses as required under section
274(d)(4). He did not have a log or records of the mileage,
dates, locations, or business purpose of the trips he took in the
Jeep.
We disagree with petitioner’s contention that he may count
business use of his Audi to offset personal use of the Jeep.
Petitioner offers no authority to support this argument, and we
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011